1. Mr. Davis deposited $1,250 into an account. He made no additional deposits or withdrawals. Mr. Davis earned 4.25% annual simple interest on the money in the account. What was the balance in dollars and cents in Mr. Davis' account at the end of 4 years? (Use your STAAR chart to find formula)

Question

Mathematics

Molly Walls

10 June, 16:10

1. Mr. Davis deposited $1,250 into an account. He made no additional deposits or withdrawals. Mr. Davis earned 4.25% annual simple interest on the money in the account. What was the balance in dollars and cents in Mr. Davis' account at the end of 4 years? (Use your STAAR chart to find formula)

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Answers (1)

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Jaylah Stokes · Answer 1

At the end of 4 years, Mr Davis will have $1462.50 in his account

Step-by-step explanation:

Simple Interest SI = (Principal P * Rate R * Time T) / 100

SI = (P * R * T) / 100

P = $1250, R = 4.25%, T = 4 years

SI = ($1250 * 4.25 * 4) / 100

SI = (21250) / 100

SI = $212.50

The balance will therefore be

$1250 + $212.50 = $1462.50